Best Buy announced Thursday their plan to close 50 U.S. big box stores. This announcement coincides with their posting a fourth quarter loss.
AP reports that Best Buy is shifting to more smaller, mobile stores that offer a more narrow focused array of products. There is a large decrease in sales of television and gaming products and an increase in phones, tablets, and e-readers. The new mobile stores will focus on these products.
Business Insider reports that although Best Buy posted a fourth quarter loss they exceeded analyst expectations.
Both stories report that losses can be attributed to the recent trend of using Best Buy to survey products before going to competitors such as Amazon and Walmart to make final purchases.
Best Buy's overall goal is to save $800 million in spending through the store closings and layoffs.
AP:
http://www.google.com/hostednews/ap/article/ALeqM5jL8Z2xFnA7YSkscF8uyX0cVMPF5A?docId=e7f03e532a7340da97cabefd01ce3e7c
Business Insider:
http://finance.yahoo.com/news/best-buy-shutter-50-big-120457157.html
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